Cellular Telephone Stipend Plan Instructions

Reasons for the creation of the cellular telephone stipend plan:
The purpose of this plan is to comply with federal and state regulations and streamline the recordkeeping and reimbursement activities.

Definition of a Cell Phone and Service:

Cellular telephone service for the purposes of this plan is any service that is being used, in any measure, to make or receive wireless voice or data calls or interactions on the public cellular telephone networks.

A cellular telephone (cell phone) for the purposes of this plan is any device that is capable of using the services provided by the public cellular telephone networks. These devices vary from a simple telephone device that allows calls to be made and received and perhaps provide simple features such as a phone number directory, simple appointment calendar, and calculator to more complex phones that can do simple text messaging and synchronizing directory and calendar data with computers, to devices with telephone features and PDA (personal digital assistant) capabilities which would include fully synchronized contact databases, calendars, email, and web browsing, to general computers with cellular phone network cards.  

Determining employee eligibility:
Who is eligible? Any university employee who has a need to use a cell phone for business purposes is eligible.
What is meant by “need”?  A monthly stipend will be issued to those employees that are in positions authorized by a Marshall University Vice President.  Positions authorized for cellular phone service usage are determined by the criteria established by the Presidents Cabinet. The criteria are as follows:

• Safety requirements indicate having cellular phone service is an integral part of performing duties of job description.
• More than 50% of work is conducted in the field.
• Required to be contacted on a regular basis. (No office)
• Required to be on-call outside of normal work hours as a job requirement
• Critical decision maker

Determining the dollar amount for the stipend:
Follow these steps to determine the dollar amount (low, medium, high, or other):

• Project business use to the best of your ability. What number of minutes per month is the employee likely to expend on business-related calls?  If the device allows messaging, email retrieval, internet use and the like, what is the likely cost for its other business uses? Use any history you may have for this position to help with the projection.
• Find a plan that best and most economically meets that projected business use. See below for links to providers. NOTE: Always mention your association with Marshall University. Most providers have discounts available to University employees.
• If the employee already has a personal cell phone, there is no requirement to obtain a second phone. Project the costs that would be incurred for business use if the employee began using the current personal phone for business purposes as well as personal use. Consider changing the basic plan if indicated.
• Using your projected costs and projected number of minutes for business use, determine annual job-related costs. Basic equipment costs may be taken into account, i.e., the university reserves the right to specify the capabilities of the cellular device (phone, or pc card) and based upon the telecommuting policy will provide devices under many circumstances.
• Costs for cosmetic or technical extras or upgrades that have no business purpose, or any personal use that might be expected, cannot be included.
• Estimate the costs for the Fiscal Year (Jul 1 through Jun 30), or the remainder of the Fiscal Year, if the request is mid-year. Use your estimate to complete your Cellular Telephone Voice/Data and Internet Service Stipend AUTHORIZATION FORM

Establishing the stipend and service:

• Use the Cellular Telephone Voice/Data and Internet Service Stipend AUTHORIZATION FORM that is available on the Information Technology Council Policies and Procedures web site.
• Fill out the form completely with consultation with your supervisor, obtain signatures, and forward the form to your supervisor and Vice President.
• NOTE: Stipends expire at the end of each Fiscal Year, Jun 30. Use the form to renew as appropriate.
• If you don’t already have a personal cell phone (or a university phone)…..apply for the stipend and acquire your own service from the carrier of your choice. To ensure that you get the best pricing and monthly discounts, mention your association with Marshall University.
  • www.cingular.com
  • www.alltel.com
  • www.ntelos.com
  • www.westvirginiawireless.com
  • www.sprint.com
• If you already have a personal phone…..just apply for the stipend and modify your rate plan to accommodate both personal and business usage. 

Transitioning from University owned phones to the stipend plan:

• Employees that currently have cell phone services through the Marshall University Telecommunications Cellular Telephone Policy may retain their current phone number if they desire to do so.  Simply apply for the stipend and once it’s approved, we will release your cell phone number from the university account. You will need to call 1-800-298-2158 and inform them that you are calling to move your phone number over to your personal name.  Be sure to have your personal information like SSN, date of birth, mailing address, etc. handy.  If your current service is with Cingular, mention that you would like to be attached to your company’s Foundation Account Number 44945 to ensure that you get the best pricing and monthly discounts.

Tax issues:

The employee’s cellular telephone stipend is taxable income.  Other employee deductions such as retirement are not affected by the stipend.

Departmental discretion:
Departmental policy regarding issuing cellular telephone stipends may be more (but not less) restrictive than University policy. For example, the department may set a lower maximum dollar amount, or restrict the stipend to only those with local cell phone numbers, or suggest that employees remain with the same carrier to reduce cell to cell costs etc.

How Payment to the Employee will be made:
Payment will be made per month on the end of the month payroll, as an addition to the employee’s payroll check. Payments will be equally divided among the month-end pay periods.

Note that the stipend does not constitute an increase in base pay, and will not be included in any percentage calculations for increase to base.

Using the cell phone service:

The cell phone service is personally owned, and may therefore be used for both personal and business calls. An employee with a cellular telephone stipend must maintain an active cell phone contract for the life of the stipend.
Note that misuse of the phone – using it in ways inconsistent with University policy or with local, state or federal laws – will result in immediate cancellation of the cellular telephone stipend.

Department responsibilities and documentation requirements:
The department must maintain a file containing a copy of the Stipend Request Form, and a copy of the related cell phone contract, showing that an active contract exists for the stipend period requested.
It is the Vice President’s responsibility to review cell phone needs in his or her unit on at least an annual basis, to determine if Stipends should be changed, continued, discontinued, or if new stipends are needed.

Ending a cell phone contract:
Contract changes or cancellations (and associated fees):

• As the result of the employee’s decision, misconduct, or misuse of the phone: If, prior to the end of the cell phone contract, a personal decision, or employee misconduct, or misuse of the phone, results in the need to end or change the cell phone contract, the employee will bear the cost of any fees associated. EXAMPLE: The employee quits, and no longer wants to retain the current cell phone contract for personal purposes.
• As the result of a University decision (unrelated to employee misconduct):  If, prior to the end of the cell phone contract period, a University decision (unrelated to employee misconduct) results in the need to end or change the cell phone contract, the University will bear the cost of any fees associated. EXAMPLE: The employee’s supervisor has changed the employee’s duties, and the stipend is no longer needed. The employee does not want to retain the current cell phone contract for personal purposes.

Purchase of the Cellular Telephone Equipment:

• It is assumed that the Employee is responsible for the purchase of a base Cellular Telephone Equipment.
• Under no circumstances state funds or a Purchasing Card can be used to purchase Cellular Telephone Equipment which is used under this Stipend Plan.
• Vice Presidential approval is  required for the purchase of Cellular Telephone Equipment under this plan from non funds

Where to get help:

Contact Rebecca Pack in the Networks and Telecommunications department for assistance.